Supreme Court Confirms Suspended Sentence for Former Financial Supervisory Service Director Who Took Kickbacks After Loan Brokerage

by Kim Daehyun

Published 12 Mar.2021 08:08(KST)

Supreme Court, Seocho-dong, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Daehyun] A former director of the Financial Supervisory Service (FSS) who acted as a loan broker, arranging loans at banks and pocketing kickbacks, has been sentenced to a suspended prison term.

On the 12th, the Supreme Court's 3rd Division (Presiding Justice Kim Jaehyung) confirmed the original sentence of 2 years and 2 months imprisonment with a 4-year suspension in the final appeal of Yoon Mo (62), an FSS official indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (bribery, etc.).

Yoon was prosecuted on charges of receiving gratuities by requesting employees of financial institutions to facilitate loans for people who had difficulty obtaining them while working at the FSS.

In July 2018, Yoon asked a bank official to approve a loan of 505 million won for Company A's CEO and received a 10 million won gratuity after the loan was arranged. Earlier, in February 2014, he accepted 20 million won from B, a standing director of a cooperative, in exchange for lowering the disciplinary level imposed by the FSS.

The trial courts in the first and second instances stated, "The fact that employees of financial companies actively demanded and received money related to their duties indicates a very serious nature of the crime considering the method and content of the offense," and "Considering that strict integrity obligations are imposed on financial institution employees, just like ordinary public officials, to ensure the non-purchasability of their duties, it is necessary to hold them strictly accountable." Accordingly, Yoon was sentenced to 2 years and 2 months imprisonment with a 4-year suspension. He was also ordered to pay a fine of 60 million won and a confiscation of 30 million won.